Using Calculations of the Cost to Americans Per Job Saved

question 21

Multiple Choice

Using calculations of the cost to Americans per job saved in protected industries, it can be concluded that

• A) import quotas are an efficient way to redistribute income.
• B) each job saved is worth more than the cost imposed on consumers per job saved.
• C) tariffs are an efficient way to redistribute income to disadvantaged groups.
• D) each job saved is worth less than the cost imposed on consumers per job saved.

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Definitions:

Marginal Revenue

The augmented income earned from trading one extra unit of a product or service.

Total Revenue

The entire sum of funds a company acquires from selling goods or offering services over a specific duration.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one additional unit of a good changes as production volume changes.

Average Variable Cost Curve

A graphical representation that shows how the cost per unit of producing a variable quantity of goods changes as the quantity of output is altered.